* In a large bowl, cream shortening and sugars until light and fluffy. Beat in the egg, water and extract. Combine the flour, salt and baking soda; gradually add to creamed mixture and mix well. Stir in coconut (dough will be sticky).

* Set aside 2/3 cup dough; roll remaining dough into 1-in. balls. Using the end of a wooden spoon handle, make a 3/8-in. deep indentation in the center of each ball. Fill each with 1/2 teaspoon jam. Cover jam with a teaspoonful of reserved dough; seal and reshape into a ball. Repeat.

* Place 2 in. apart on ungreased baking sheets. Bake at 375° for 10-12 minutes or until lightly browned. Remove to wire racks to cool. Yield: about 2-1/2 dozen.